Discounted Cash Flow (DCF) Analysis Unlevered

Chimera Investment Corporation (CIM)

$5.99

+0.08 (+1.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 3,540.39 | 5.99 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 629.18452.74490.79228.831,057.031,820.493,135.375,399.939,300.1216,017.26
Revenue (%)
EBITDA 1,057.521,090.841,172.56605.191,001.153,666.886,315.3310,876.6818,732.5232,262.36
EBITDA (%)
EBIT -----3,666.886,315.3310,876.6818,732.5232,262.36
EBIT (%)
Depreciation ----------
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 63.5747.49109.88269.09385.74717.511,235.742,128.273,665.446,312.85
Total Cash (%)
Account Receivables 100.79123.44562.6581.1669.51728.081,253.952,159.633,719.456,405.88
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 79.08126.8769.7646.6731.99284.82490.54844.841,455.052,505.97
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 5.99
Beta 1.144
Diluted Shares Outstanding 245.50
Cost of Debt
Tax Rate 0.65
After-tax Cost of Debt 4.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.365
Total Debt 7,814.04
Total Equity 1,470.53
Total Capital 9,284.57
Debt Weighting 84.16
Equity Weighting 15.84
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 629.18452.74490.79228.831,057.031,820.493,135.375,399.939,300.1216,017.26
EBITDA 1,057.521,090.841,172.56605.191,001.153,666.886,315.3310,876.6818,732.5232,262.36
EBIT -----3,666.886,315.3310,876.6818,732.5232,262.36
Tax Rate 0.02%0.02%0.05%0.18%0.65%0.18%0.18%0.18%0.18%0.18%
EBIAT -----3,660.136,303.7110,856.6718,698.0632,203
Depreciation ----------
Accounts Receivable --22.65-439.21481.4911.65-658.57-525.87-905.68-1,559.82-2,686.43
Inventories ----------
Accounts Payable -47.79-57.11-23.09-14.68252.83205.72354.30610.201,050.93
Capital Expenditure ----------
UFCF -----3,254.405,983.5710,305.2917,748.4330,567.50
WACC
PV UFCF 3,100.025,429.348,907.1814,612.8123,973.26
SUM PV UFCF 56,022.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.98
Free cash flow (t + 1) 31,178.85
Terminal Value 1,046,270.28
Present Value of Terminal Value 820,561.33

Intrinsic Value

Enterprise Value 876,583.94
Net Debt 7,428.30
Equity Value 869,155.64
Shares Outstanding 245.50
Equity Value Per Share 3,540.39